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+




    MBA/570

    Sustainable Customer Relationships

    November / December 2008
+
    Agenda

        Housekeeping
    

        Marketing in the news
    

        Review: major concepts
    

        Marketing Strategy
    

        Service Marketing
    

        Next time…
    




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
+
    Housekeeping
        Z-Wing Papers, Classic Airlines Problem Def.
    

        Final assignment
    

        Classic airlines paper & defense
    




                              - or -
        Two page executive summary
    

        5 presentation slides (individual)
    

        Group presentation (15 minutes max)
    



MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
+
    Week 5 Concepts

        Identify best practices in customer relationship
    
        management

        Propose customer acquisition and retention
    
        initiatives

        Evaluate customer risk
    

        Align customer relationship initiatives and
    
        organizational goals




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS    NOV / DEC 2008
Marketing in the
    news
This slide brought to you by….


            Ads on tests add up for teacher
            By Greg Toppo and Janet Kornblum, USA TODAY

            Tom Farber gives a lot of tests. He's a calculus teacher, after all. So when administrators at
            Rancho Bernardo, his suburban San Diego high school, announced the district was cutting
            spending on supplies by nearly a third, Farber had a problem. At 3 cents a page, his tests
            would cost more than $500 a year
No Lamp For You!
+
    Cyber Monday!




              26% Shopped online Monday
          
+
    Cyber Monday!




              26% Shopped online Monday
          
Case Study:
General Motors
+
    Case Study: General Motors

        “A Car for Every Purse & Purpose”
    
Case Study: General Motors




    2005 Restructuring

WorkshopIV
 Review
Market Segmentation
Apple Computer




      Power Mac G5   PowerBook




          iMac         iBook
+
    Perceptual Mapping




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
PositioningMap




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
Marketing
Strategy
Exercise: What
business are you
      in?
Exercise: What business are you in?



Put on my blue suede shoes                    Saw the ghost of Elvis
And I boarded the plane                       On Union Avenue
Touched down in the land of the Delta Blues   Followed him up to the gates of
                                              Graceland
In the middle of the pouring rain
W.C. Handy -- won't you look down over me     Then I watched him walk right
                                              through
Yeah I got a first class ticket
                                              Now security they did not see him
But I'm as blue as a boy can be
                                              They just hovered 'round his tomb
Then I'm walking in Memphis                   But there's a pretty little thing
Walking with my feet ten feet off of Beale    Waiting for the King
Walking in Memphis
                                              Down in the Jungle Room
But do I really feel the way I feel


            You have until the end of the song….go!
+
    Marketing Myopia

        Well known HBR Article
    

        Define your business by customer needs, not
    
        products

        What business are you really in?
    
            Railroads, Hollywood, Dupont Nylon
        
+ Why on earth are you playing songs?
Why on earth are you playing songs?
+
    Levels of Corporate Strategy
+
    Land’s End: Strategic Focus




        Why the guarantee?
    

MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
+
    Land’s End: Competitive Analysis




        Good competitive analysis template
    




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
+
    Hyundai: Strategic Focus




        Why the long warranty?
    

MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
The BCG Matrix




    Kodak digital                              Kodak digital
      camera                                   photo printer




Kodak film sales: US,                           Kodak self-
Canada, & W. Europe                            service kiosk




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS     NOV / DEC 2008
Four market-product strategies: alternative ways to expand
sales revenues for Ben & Jerry’s
Case Study:
“Song” Airlines
    Part 1
+
    Song Airlines Part 1

        What do you think of their strategy?
    

        What would Levitt think?
    




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
+
    Song Airlines Part 2

        What are they doing right?
    

        What are they doing wrong?
    




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS   NOV / DEC 2008
+
    Song Airlines Part 3

        What was Song’s biggest mistake?
    

        What happens when you give marketers $20M to
    
        start an airline?
            great branding, no product!
        

            you get and airline about nothing!
        




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS     NOV / DEC 2008
Case Study:
Specialized
 Bicycles
+
    Case Study: Specialized Bicycles

        What is their corporate strategy?
    

        How does their culture reinforce that strategy?
    




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS    NOV / DEC 2008
Service
Marketing
FIGURE 12-1 Importance of services in the
U.S. gross domestic product (GDP)




                                            Slide 12-7
FIGURE 12-AThe 4 I’s of services




                                   Slide 12-8
Lufthansa and ANA Airlines
What four I’s of services element?




                                     Slide 12-9
American Express and Allstate
What four I’s of services element?




                                     Slide 12-10
FIGURE 12-3 Service continuum




                                Slide 12-13
FIGURE 12-2 Inventory carrying costs of
services




                                          Slide 12-11
FIGURE 12-5 How consumers evaluate
goods and services




                                     Slide 12-24
Case Study:
Philadelphia
  Phillies
+
    Phillies Key points
        Why reduce the number of seats?
    
            advantages? drawbacks?
        


        How do the Phillies target different demographics?
    
            Hispanic? African American? Asians?
        

            “Ask for the sale”
        


        Promotions?
    

        Results?
    
+
    Next Week

        Papers – or – presentations due
    

        Select value added customer initiatives
    

        Implement a comprehensive customer relationship
    
        management program

        Recommend measures to evaluate customer
    
        profitability and retention

        Recommend measures to evaluate customer
    
        relationship management effectiveness




MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS      NOV / DEC 2008

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mba570.marapr09.class5

  • 1. + MBA/570 Sustainable Customer Relationships November / December 2008
  • 2. + Agenda Housekeeping  Marketing in the news  Review: major concepts  Marketing Strategy  Service Marketing  Next time…  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 3. + Housekeeping Z-Wing Papers, Classic Airlines Problem Def.  Final assignment  Classic airlines paper & defense  - or - Two page executive summary  5 presentation slides (individual)  Group presentation (15 minutes max)  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 4. + Week 5 Concepts Identify best practices in customer relationship  management Propose customer acquisition and retention  initiatives Evaluate customer risk  Align customer relationship initiatives and  organizational goals MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 6. This slide brought to you by…. Ads on tests add up for teacher By Greg Toppo and Janet Kornblum, USA TODAY Tom Farber gives a lot of tests. He's a calculus teacher, after all. So when administrators at Rancho Bernardo, his suburban San Diego high school, announced the district was cutting spending on supplies by nearly a third, Farber had a problem. At 3 cents a page, his tests would cost more than $500 a year
  • 7. No Lamp For You!
  • 8. + Cyber Monday! 26% Shopped online Monday 
  • 9. + Cyber Monday! 26% Shopped online Monday 
  • 11.
  • 12. + Case Study: General Motors “A Car for Every Purse & Purpose” 
  • 13. Case Study: General Motors 2005 Restructuring 
  • 16. Apple Computer Power Mac G5 PowerBook iMac iBook
  • 17.
  • 18. + Perceptual Mapping MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 19. PositioningMap MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 22. Exercise: What business are you in? Put on my blue suede shoes Saw the ghost of Elvis And I boarded the plane On Union Avenue Touched down in the land of the Delta Blues Followed him up to the gates of Graceland In the middle of the pouring rain W.C. Handy -- won't you look down over me Then I watched him walk right through Yeah I got a first class ticket Now security they did not see him But I'm as blue as a boy can be They just hovered 'round his tomb Then I'm walking in Memphis But there's a pretty little thing Walking with my feet ten feet off of Beale Waiting for the King Walking in Memphis Down in the Jungle Room But do I really feel the way I feel You have until the end of the song….go!
  • 23. + Marketing Myopia Well known HBR Article  Define your business by customer needs, not  products What business are you really in?  Railroads, Hollywood, Dupont Nylon 
  • 24. + Why on earth are you playing songs?
  • 25. Why on earth are you playing songs?
  • 26. + Levels of Corporate Strategy
  • 27. + Land’s End: Strategic Focus Why the guarantee?  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 28. + Land’s End: Competitive Analysis Good competitive analysis template  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 29. + Hyundai: Strategic Focus Why the long warranty?  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 30. The BCG Matrix Kodak digital Kodak digital camera photo printer Kodak film sales: US, Kodak self- Canada, & W. Europe service kiosk MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 31. Four market-product strategies: alternative ways to expand sales revenues for Ben & Jerry’s
  • 33.
  • 34. + Song Airlines Part 1 What do you think of their strategy?  What would Levitt think?  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 35.
  • 36. + Song Airlines Part 2 What are they doing right?  What are they doing wrong?  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 37.
  • 38. + Song Airlines Part 3 What was Song’s biggest mistake?  What happens when you give marketers $20M to  start an airline? great branding, no product!  you get and airline about nothing!  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 40.
  • 41. + Case Study: Specialized Bicycles What is their corporate strategy?  How does their culture reinforce that strategy?  MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008
  • 43. FIGURE 12-1 Importance of services in the U.S. gross domestic product (GDP) Slide 12-7
  • 44. FIGURE 12-AThe 4 I’s of services Slide 12-8
  • 45. Lufthansa and ANA Airlines What four I’s of services element? Slide 12-9
  • 46. American Express and Allstate What four I’s of services element? Slide 12-10
  • 47. FIGURE 12-3 Service continuum Slide 12-13
  • 48. FIGURE 12-2 Inventory carrying costs of services Slide 12-11
  • 49. FIGURE 12-5 How consumers evaluate goods and services Slide 12-24
  • 51.
  • 52. + Phillies Key points Why reduce the number of seats?  advantages? drawbacks?  How do the Phillies target different demographics?  Hispanic? African American? Asians?  “Ask for the sale”  Promotions?  Results? 
  • 53. + Next Week Papers – or – presentations due  Select value added customer initiatives  Implement a comprehensive customer relationship  management program Recommend measures to evaluate customer  profitability and retention Recommend measures to evaluate customer  relationship management effectiveness MBA / 570 SUSTAINABLE CUSTOMER RELATIONSHIPS NOV / DEC 2008